THE
TRUE STORY
OF THE
LEADEN STATUARY;
OR,
A CURIOUS CHAPTER IN ECONOMIC HISTORY.
BY
DAVID A. WELLS.
Reprinted from  The New  York World of May 1lth, 1814.
NEW  YORK:
1874.








TRE STORY
TRIJE STORY
OF THE
LEADEN STATUARY;
OR,0
A CURIOUS CHAPTER IN ECONOMIC HISTORY.
BY
DAVID A.:" WELLS.
Reprinted from  The New  York World of May 11th, 1874.
NEW  YORK:
I874.




"A  story as amusing as a novel is scarcely what we are
accustomed to expect from the sedate pen of our excellent economist, Mr. DAVID A. WELLS. But that is precisely what we
are indebted to him for this morning, as the brightest of our
fairest readers will admit, who hate figures, skip statistics and
would disclaim the ballot if it involved learning economics.
Mr. WELLS has dug up and relates for us the True Story of the
Leaden Statuary. Its moral draws itself, as in the case of all
good and well told stories."-New York World, May 11th, 1874.




A CURIOUS CHAPTER IN  ECONOMIC HISTORY.
THERE is an amusing old story told of the magistrates of a
certain country town in France, who, before the days of street
lamps and gas, and as a better security against the unlawful
acts of'" vagrom men," passed an ordinance that " no citizen
should walk out after dark without a lantern," and that disobedience of the law should entail a heavy penalty.  The
watch, vigilant in the performanceof duty, accordingly arrested,
the first night after the law took effect, a well known and estimable individual, but of waggish propensities, and hauled him up
before the local Dogberry on charge of having broken the statute.
The defendant, however, on being asked why punishment should
not be inflicted upon him, averred that he had committed no
offence, and, in support of his plea, produced a lantern. It being rejoined that the lantern had no candle, he next maintained
that the law did not require that the lantern should contain
any candle; and the statute being examined and the defence
found valid, the arrested party was dismissed and the law
so amended as to read, " that no citizen should hereafter
walk out after dark, without a lantern and a candle." The
next night the same person being found walking in darkness
was again arrested and arraigned, but again maintained that
he had committed no offence; and, in proof thereof, produced a
lantern and showed that it contained a candle. " But the candle," said Dogberry, " is not lighted." " And the law," rejoined
the wag, " does not require that it should be; and this interpretation being found correct, the accused was once more discharged and the statute further amended  so as to read,
" that no citizen should hereafter walk out after dark without
a lantern and a candle in it, and that the candle should be
lighted."
The next night the same incorrigible and troublesome person
was again brought up before the Court, and this time both watch
and magistrate thought they had a sure thing of it; for, to all
appearances, he had not on this occasion even made a pretence




4
of complying with the law. But the triumph of the officials
was of brief duration, for, to their utter disgust and amazement,
the accused drew from his capacious coat pocket a dark lantern,
and showed that it not only contained a candle, but that the
candle was lighted and burning. TWarned by this threefold experience, the statute was for a third time amended, and this
time so fully and clearly that no further practical jokes were
attempted, and the majesty of the law remained unassailed.
As thus told the above story is manifestly a broad burlesque,
even in its application to stupid French " country officials,"
and without further foundation than the imagination of its
author. But it is nevertheless a most curious and amusing circumstance that it has been reserved to the United States to
furnish out of the history of its fiscal legislation a record of
actual experience which, in many respects, is the exact and
truthful counterpart of the French burlesque; and, as the incidents involved have more than once (but always incorrectly)
been alluded to on the floor of Congress, and may be found pertinent to prospective legislation and debate in respect to custom house reforms and irregularities, it is proposed to now embody them for the first time, and, as a contribution to economic
literature, in the form of a correct and complete narration.
Between the years 1816 and 1828, encouraged by the imposition of a low duty on imported metallic lead, the manufacture of
white lead as a basis for paints came into existence in the
United States and developed with great rapidity, the principal
seats of the business being the cities of New York, Philadelphia
and Baltimore. But about the years 1826-28 the discovery
of the lead mines at Galena, Ill., became generally known, and
as the first reports were to the effect that the deposits
were of such unparalleled richness, purity, magnitude and
easy accessibility as to make it only a question of time
when the whole world, from sheer inability to compete, became
wholly dependent for its supplies of lead on this one locality,
it was at once considered desirable by many people to establish,
so far as fiscal legislation could do it, a most extraordinary
economic principle, and one which from that day to this has
proved popular in all our tariff enactments; and this was
to make the discovery or recognition of the existence of any
great natural advantages-either in the way of mines, soils,




5
climatic advantages, forests, means of intercommunication or
national characteristics-the immediate occasion for cursing the
country by the creation and imposition of some new tax, thereby
making dear what was before cheap, and endeavoring to work
up to a state of abundance through conditions of scarcity
artificially created and unnecessarily perpetuated. In this particular instance the principle was exemplified by raising the
duty on lead imported in pigs and bars from one cent a pound
to three cents; and to this extent increasing to the consumer
the price of the raw material, whether of foreign or domestic
origin, and of all manufactured products in which lead entered
as the principal constituent. As the duty was not at the same
time correspondingly advanced on the import of white lead, and
as the lead mining interests of Galena were not prepared to
supply at any price the immediate demand thus artificially
created for their products in the domestic market, the American manufacturers of white lead all at once found their business
threatened with utter destruction; and, with intellects preternaturally sharpened by a prospective loss of a large invested
capital, they looked shrewdly about to see in what manner they
could save and protect themselves.
And putting on their spectacles, and scrutinizing carefully the
entire tariff, as modified by the special Act of 1828 referred to,
they soon discovered that the Government, while effectually
closing and barring up the big door by which foreign lead could
be imported, had inadvertently left wide open a smaller door
beside it, inasmuch as while Congress had prescribed a duty of
three cents per pound on lead imported in pigs and bars, they
left a prior duty of fifteen per cent. ad valorem on the import of
old lead fit only to be remanufactured, unrepealed and in force.
Those were the days of packet ships and slow communication
with the Old World; but we may readily believe that no time
was unnecessarily wasted by those interested in this discovery;
and at the earliest practicable moment afterwards agents of
nearly every important American house engaged in the importation of metals-Barclay & Livingston, Boorman, Johnson & Co.,
Hoffman, Bend & Co., Phelps & Peck, William Wright & Co.,
and many lesser firms-were ransacking the markets of Europe
for the purchase and shipment to the TUnited States of old lead.
Of course, the legitimate market supplies, never great, of this




peculiar article soon gave out, but the agents and correspondents of the American houses being Yankees, proved fully equal
to the emergency, and a scheme was forthwith devised to replenish the stock by exchanging new lead for old, and contracts
in more than one instance, for example, were actually entered
into and carried out for stripping from extensive factories in
different parts of England their old lead roofing-lead being
then used more extensively than now in the place of slate-and
replacing it without expense to the owners with new roofing on
condition of receiving the old material.
In the course of time the old lead thus collected began to
make its appearance on this side of the Atlantic, and arriving
in large quantities-almost by the ship load-at the ports of
New York and Boston, naturally attracted the attention of the
custom house authorities, who at first demurred to its entry at
the low duty of 15 per cent. ad valorem. The matter, however,
being referred to the Treasury Department at Washington, an
answer soon came back that the position of the merchants was
unimpeachable, but the Department would have the law
amended as soon as possible.
But the merchants by this time, in studying up the fiscal
legislation of Congress in respect to lead in pigs and old lead,
had made another discovery-and that was that the tariff Act
in force was mandatory to this further effect, namely, that if
any person or persons should import musket balls or leaden
bullets into the United States they should pay to the custom
authorities a duty on the same of 15 per cent. ad valorem, and,
in default thereof, the goods should be forfeited and the importers be punished. Like good citizens, therefore, the merchants
made haste to obey the law, and their agents in Europe being
duly instructed, lost no time in buying up all the musket balls
and leaden bullets they could find for sale, and when the foreign
markets were exhausted they had musket balls of the regulation weight and calibre largely manufactured, and all were duly
shipped as fast as possible to the United States. Again the
custom house authorities objected, but again came back the response from Washington that the law was explicit in respect to
the 15 per cent. duty, and that nothing could be done in the
way of restraining the importation of leaden bullets in place
of pig lead until Congress had provided further legislation on
the subject.




But the tariff Acts in force from 1828 to 1832 were, however,
almost as much a mystery and a muddle of perplexity as are
the Acts under which the customs are at present administered,
and it was only after continuous study and investigation that
their full depth of meaning and of wisdom could become evident. But the success attending the import of old lead and
musket balls had been so remarkable, and the preservation and
resuscitation of the " white lead" business so encouraging, that
the merchants were stimulated to further fiscal investigations;
and again putting on their spectacles, they discovered two
other remarkable provisions of the then existing tariff which
heretofore had not been considered of much importance. These
provisions related, the one to " leaden weights " of all descriptions, and the other to " sounding leads," and were to the effect
that if any person imported any of these articles into the
United States he should pay on the same a duty of 15 per cent.
ad valorem.
It seems almost unnecessary to relate in detail the consequence of these discoveries, but it sufficeth to say that those
were the good old days when false standards were far more of
an abomination than they now are, and it was astonishing how
great a demand all at once appeared to have been created in
the United States for full, fresh, and new sets of leaden weights
(from half an ounce to fifty-six pounds and upwards, but notably of the heavier denominations), which had not had their
accuracy impaired by continuous use and abrasion. If the
exact truth, moreover, could now be known, it might also appear that many persons at that time (especially in the cities of
New York and Boston) had somehow become indoctrinated with
the idea that the possession of more " weights " would in some
way increase the quantity of things to be weighed-in the same
way as the progressive men of the present day have brought
themselves to believe that the possession of more paper money
will increase the value and quantity of the things that this same
money can buy. Those were the days, also, when clocks were
high and stood in corners rather than upon mantels, and were
moved by weights rather than by springs, and our ancestors of
forty years ago-and none knew better than they that " time
is money "-all at once seemed possessed with the desire to
have more clocks, for the import of heavy leaden clock weights,




8
with iron hooks neatly fitted to one end, and which prima
facie could be only used for the manufacture of clocks, all at
once increased and rapidly became a business of magnitude.
Navigators also about this time, it might be inferred, became
more intelligent; or, if not more intelligent, then, through a
desire to save their insurance premiums, more cautious; or, if
not these, then the desire of American geographical students to
study more accurately the sea bottom, might have been abnormally stimulated; for in what other way could an excessive
and unusual import of deep sea sounding leads be accounted
for — leads small, leads large, leads of two ounces weight, leads
of seventy pounds weight, leads a few inches in length up to
leads two feet in length-all with an eyelet at one end for the
sounding line attachment and a, cavity at the other for the reception of the tallow, by the agency of which specimens were
to be brought up from the sea bottom.
But the custom house authorities were practical men. They
indulged in no philosophical reflections as to any abstract
possible uses of the imported articles in question. They saw
in all of them lead and lead only-and on lead, in the interests
of the Galena mines and of the revenue, they wanted a duty of
three cents per pound.  They accordingly, as opportunity
offered, seized and refused to deliver the exceptionally large
invoices of " clock weights " " scale weights" and " sounding
leads," and the appeal, as usual, from their proceedings went up
from the merchants to Washington. But if the custom house
officials were practical men, the Treasury magnates at the
capital, on the other hand, were strict constructionists, and as
they found the statute written so they interpreted it; and in all
cases the arrested importations of the merchants were, after a
little delay, restored and admitted to entry; and in at least one
case, where three cents per pound had been paid under protest
on the above mentioned leaden articles, the difference between
that sum and fifteen per cent. was returned to the merchant by
the Treasury. In fact, as " sea stores " of all descriptions were
then on the free list, " sounding leads " might have been claimed
to be exempt from  all imposts; but the merchants were
generous, and this question does not appear to have been
raised.
It is not to be denied, nevertheless, that by this time lead




9
had got to be a very irritating topic to a Federal official; and
indeed it was only necessary to say " lead " to a United States
district attorney, a collector or revenue inspector, to seriously
disturb his mental equanimity.  An opportunity to retaliate
upon their mercantile tormentors was therefore earnestly sought
for, and before long such an opportunity seemed to present
itself. A prominent New York house in the metal trade, which,
in connection with some half dozen or more leading firms, had
been engaged in importing old lead, musket bullets, sounding
leads, clock weights, and the like, and passing them, under
a strict but legal construction of the statute, at fifteen per cent.
ad valorem, imported on one occasion, during the period under
consideration but subsequent to the events narrated, an invoice
of stereotype metal. Now, stereotype metal was then on the
free list of the tariff, and subject to no duty, and in this particular instance the importation had been made in consequence
of a direct order received from one of the largest type founders
in New York; but as it came in pigs or bars, was in unusual
quantity, and consisted  merely of lead mixed with comparatively small proportions of antimony and bismuth, the
custom house officials conceived the idea that it was only a new
device of the enemy to take advantage of the faulty statute, and
that the ultimate intent was to remelt the stereotype metal,
separate its several constituents, and then dispose of the lead
independently. The whole invoice was accordingly seized, and
suit commenced in the United States District Court for its forfeiture, the Government having previously ascertained, by means
of an analysis of a sample bar, made at their request by the
then famous New York chemist, old Dr. Chilton, that the metal
contained somewhat more than eighty per cent. of lead. The
District Attorney at that time was Price, afterwards best
known for some financial irregularities. The merchants, of
course, resisted, and on the day of trial appeared in court with
the type founder on whose account the metal was ordered, and
other experts, to prove that the import and prospective use of
the metal were entirely legitimate. The Government opened
their case by stating their assumption that the metal was not
imported for the manufacture of stereotypes but for the purpose of defrauding the revenue, and, calling as their first witness Dr. Chilton, examined him somewhat as follows:
2




10
District Attorney-What is your profession? Dr. ChiltonA chemist.
Q. Where were you educated   A. In Edinburgh, and have
followed for many years my profession in New York.
Q. Have you made an analysis of this imported metal [at
the same time referring to one of the bars included in the invoice]? A. I have.
Q. Of what does it consist?  A. Of some 80 per cent. of
lead; the remainder, antimony, bismuth and tin.
Q. Is it possible to separate these several constituents, as
thus mixed, so as to use and sell them separately   A. Perfectly so.
Q. Please tell the Court what, in your opinion, would be about
the expense of the operation. A. Rather more than all the
materials are worth.
There was silence for a few moments. The District Attorney
did not seem to be possessed of a further inquiring spirit. It
was a warm summer's day, and the Judge (Betts), after mopping his face with his handkerchief, stretched his head forward,
and, somewhat brusquely, asked if Mr. Price had any rebutting
testimony, and, on receiving a negative reply, fell back in his
chair with the remark,' Then the case had better be dismissed." And dismissed it was.
But the troubles of the custom house officials were not yet
ended; and here comes in that portion of this curious series
of events which is best known to the public, is the most comical, and which, as has already been remarked, is often referred
to in Congressional debates, when topics of the tariff, smugging, or under valuations are under consideration.
The wicked merchants, encouraged by their complete success
as law interpreters, had continued their tariff investigations,
and had. further found among its provisions in force one to the
effect that " metal statuary and busts " might be imported free
of duty. It was thereupon immediately determined by the merchants that if the American people desired to cultivate their
taste, or keep alive the memory of the good and great of former
days by adorning their houses and grounds with metal statuary,
they ought to have the opportunity of so doing; and, accordingly, large orders were sent to Europe-at that time the exclusive seat of high art-for the manufacture of busts-mainly




11
colossal-of Washington, Lafayette, Napoleon, Moses and the
prophets, and not forgetting, also, duplicates or reproductions
of the great works of antiquity; and as lead, of all the metals,
seemed to possess in the highest degree the qualities of durability, tenacity, cheapness, and facility of being moulded, the
statuary in question was directed to be made of lead. It should
also be remarked in this connection that lead statuary fifty
years ago was not the abnormal exceptional thing it now is.
In fact it was then the common material for cheap imagery
throughout Europe, when something less expensive  than
bronze or marble was desired, and filled the place which is now
supplied by cast iron and zinc, but which materials fifty years
ago were not thought susceptible of ornamental adaptation.
And that the lead statuary in question was really ornamental is
proved by the circumstance that some of it thus imported is
yet in use for ornamental purposes, one piece embellishing at
the present time the garden of an eminent banker on Fifth
avenue. From  such an aesthetic point of view, also, did the
prosaic custom house officers regard the first importations of
these leaden images, and so might they long have continued
to regard them, had the persons in Europe intrusted with their
shipment been more careful in respect to packing. But when
Washington came up out of the hold of the vessel after a rough
voyage with his nose punched in, and Napoleon with his eyes
sufficiently askew to require an operation for strabismus, and
Moses looking very much like a subject on whom  the law
ought to be administered rather than an author and administrator of the law, suspicion was naturally excited, and forthwith the statuary was seized and held for forfeiture by the
customs authorities.  In answer, the importers, as before,
pointed to the clear and explicit provision of the tariff then in
force-" Metal statuary and busts free"-and urged the Government, if they doubted, to institute a suit. But Mr. Price, the
district attorney, had once burned his fingers with cold lead,
and persistently refused to bring the matter into court. Thereupon one of New York's then best known merchants and publicists, who still flourishes in a serene old age, caused an invoice
of the questionable statuary to be imported into Boston, and
arranged with the district attorney of that port to try the
issue in respect to its dutiable character. When the trial came




12
on Daniel Webster appeared as counsel for the defence. His
speech in answer to Government was very brief but to the
point, claiming the law provided for the admission of metal
statuary, busts, etc., free, with no limit as to the kind or quantity,
and that the imports in question were metal statuary, though
made of lead. When the case closed Mr. Webster requested
the Judge to charge the jury that they were to decide whether
the articles were metal statuary, and if they found that they
were, they must bring in a verdict for the defendants.  The
Judge substantially did as requested, and the jury, in a few
minutes after retiring, returned with a verdict for Mr. Leavitt.
The decision in this case practically put an end to the whole
controversy.  The lead statuary under seizure was released,
the import was allowed to go on unrestricted, and, as soon as
circumstances permitted, Congress amended the tariff by
equalizing the duties on all forms of lead, and at the same time
satisfied the white lead manufacturing interest by fully protecting their products from foreign competition.
As this curious story has been heretofore told, the importation of the leaden statuary has been popularly attributed to
the agency of the well known New York firm of Phelps, Dodge
& Co. This is, however, an error. The firm of Phelps, Dodge
& Co. was not at the time of the occurrence of these events in
existence; and the old firm that preceded them-namely, that
of Phelps & Peck-although large importers of metals, were
not concerned in this matter of the leaden images.
It would be a mistake, furthermore, to infer that like muddles and perplexities cease to characterize the tariff when Congress, taught by experience, successively remedied the omissions
and commissions of the Act of 1828. On the contrary, there has
been hardly a tariff enacted since that time which has not the
absurdities of the old lead, the musket balls, the clock weights,
the deep-sea leads, and the leaden images in some form repeated. Thus, for example, in the tariff of 1846 a duty was imposed on flaxseed of twenty per cent., but in the tariff of 1857
linseed was made free while flaxseed was charged fifteen per
cent. duty. As might have been expected, the import of linseed was always large, but that of flaxseed very small.
Again, in 1864, the manufacturers of spool thread, anxious to
shield themselves against all foreign competition, obtained a




13
prohibitory duty on the import of unwound cotton thread or
yarn. When the law went into effect it was found that the result of the new duty would be the destruction of the manufacture of fine elastic fabrics, suspenders, gaiters, etc., as well as
of certain worsted fabrics, which were dependent on Europe for
certain qualities of warp yarns not then manufactured on this
side of the Atlantic. The difficulty was, however, got over by
an absurd Treasury ruling, that cotton warp or yarn intended
for use in the manufacture of elastic worsted or woollen fabrics
was not unwound thread or yarn, but a manufacture of cotton
" not otherwise provided for."
And, coming down still later, Congress, in 1872, enacted a
general reduction of ten per cent. in tariff rates on metals and
manufacture of metals-watches and jewelry excepted. It
clear, however, that "watch cases" are not " watches," and
neither are springs, escapements, wheels, etc., etc., considered
separately. The course of trade, therefore, in respect to imported watches, soon adjusted itself as follows: The movements
taken out of the cases, packed in separate cartons, but carefully numbered, are, when thus imported, clearly manufactures
of metals, and as such entitled to the rebate of ten per cent. In
like manner the cases, without the essentials of a watch in
them, are nothing but manufactures of metal (gold and silver),
and must be also thus treated in respect of duty. Watches, of
course, when they come in as watches, pay full duty!!
Thus the old, old story of the effect of impolitic and absurd
restrictions on trade and commerce, the lesson of which Europe
through centuries of experience learned and profited by, continues to repeat itself in the fiscal policy of the United States.
Let us hope that the result here, too, at no distant day will be
what it has been elsewhere, namely, to force mer to the conclusion that the best system of taxation is to tax but a few
things, and then leave those taxes to diffuse, and adjust, and
apportion themselves by the inflexible laws of trade and political
economy-and, furthermore, to recognize that no system  of
government has any just claim  to the title of free which
arbitrarily takes from its citizens any portion of their property
except to defray the State's necessary expenditures.